Portfolio Update: In our Cyclical portfolio we have moved global equity exposure from Latin America to Europe while in the Tactical Portfolio we are reducing energy exposure to take advantage of shifting global leadership and improving trends from the metals.
The S&P 500 continues to make lower highs as new lows have approached, but not broken below, new highs. This breadth signal occurred as the S&P 500 was peaking in January. It re-emerged near the March and August highs and appears to be doing so again.
It's hard not to notice the strength we've been seeing in the metals space lately. This surely is getting the Gold Bugs excited.
We wouldn't consider ourselves any kind of "bug," but it's fair to say we're biased toward charts that trend. If line goes up, we like to buy. If line goes down, we like to sell. Simple.
If we can get into an emerging trend early -- so much the better!
"Poor man's gold" (as JC called it), might just be starting a big relative outperformance trend that could spell a big opportunity for us.
Don't listen to people who claim to know the future.
They're all full of shit.
Technical analysis isn't a mystical prediction machine. This is nothing but a simple, repeatable, and foolproof process for managing risk.
Whenever we're looking to buy a stock, a cryptocurrency, or any other publicly traded asset, we always prioritize where we're wrong rather than how much money we could make.
If you haven't learned by now that risk management is paramount when managing money, you're beyond saving at this point.
The Outperformers is our custom-made scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for significant moves.
The goal is that as the market rally progresses, the sector rotation within the market will reflect in this scan. So while our Top/Down Analysis helps us with the broader view of the market, this Bottom/Up scan makes sure that we catch the slightest change in sentiment.
The market breadth has definitely improved, but certain stocks are pushing higher on momentum, and we're here to identify just those! This week, we have a stock from the Auto sector making new highs. Let's take a look!
We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
Contrary to popular belief, I don't know what the market is going to do next.
I have no way of possibly knowing if the S&P500 is going to double from here or if it's going to get cut in half. Gold can go to $5000/oz or $5/oz. Crude Oil can go to $250/barrel or $2. I just don't know.
We all have our 'opinions', sure. I mean, how can we not? We're humans right?
But we're making decisions with unknown information.
